Tips to keep in mind while buying a home
Owning a home ranks high on most individuals' 'to-do list for life' and it is usually a once-in-a-lifetime opportunity. You can't wait for the day when you can sigh contently and put a big, bold check against 'Own a Home' in your wish list.
In your haste and excitement to become a proud homeowner, don't miss certain important aspects that you may regret for the rest of your life. Here are some common mistakes you should avoid.
Anywhere is fine!
No, it is not! Location is a critical factor while choosing your home, a place where you will spend at least a few, if not all the years of your life. Location determines the cost of your house as well as its resale value.
While it may not be possible to get all the conveniences within your budget, it is important to know the amenities available in the locality.
Find out the distance to the nearest railway station, supermarket, hospital, school, etc. Keep in mind the distance from your potential home to your workplace. Ask around to understand how safe the neighborhood is; do not go merely by the builder's billboards or the estate agent's recommendations.
Pick any from the list
Don’t ever! An online search will give you 500+ hits. Don't just choose a fancy name from among them. Remember, the builder you choose is as important as the location. You might want to talk to those who have purchased homes from the builder's earlier projects.
Certain institutions such as Quality Council of India and Bureau of Indian Standards (BIS) help you ascertain the quality of construction and the reliability of the builder. Ask the builder for audit reports and look for the BIS mark on the fittings and electrical wires used. Be informed about expected possession dates. Check with existing owners about the builder's delivery history so that you can have a backup plan in case of a delay in possession.
Complete faith in online real estate portals
Dangerous! There are several real estate portals out there. Don't blindly believe the information they provide, authenticate their reliability first. Before you make any financial or legal commitments, visit the property and conduct a thorough inspection. Don’t let fraudsters and unscrupulous middlemen toy with one of your biggest aspirations. Wherever possible, deal directly with the seller.
Ignore the fine print
Never do! The paperwork and legal aspects during the buyer-seller transaction need close monitoring. Before executing the sale deed, ensure that the documents such as No Objection Certificate (NOC) from concerned authorities, no encumbrance certificate on property, etc. are in place.
Get clarity on whether the final amount quoted includes property taxes, stamp duty, registration fees, etc. Visit your local property tax website to learn how property tax is calculated. In case of an existing building, check if the seller has cleared the outstanding property and municipal taxes.
Neglecting finances
Never! Poor financial planning can result in hassles. Today, homeowners can choose from a wide range of funding options like home loans, mortgages, loan against securities, etc. Understand your requirement and pick the option that best suits your plans.
Usually, the total expenses end up being more than the initial amount you were considering. Remember to set aside a certain amount as a buffer. Be prepared and avoid last-minute panic. In case you opt for an under-construction property, it is better to pay at least 20% as down payment, followed by regular small payments at pre-determined milestones and the final major amount should be paid on possession.
Adding to the bills
Think again! While you may feel that everything in your new sparkling house needs to be new, don’t go overboard. Wherever possible, use what you have. Polish your old furniture or replace the cushioning and it will be as good as new. Apply a fresh coat of paint on your refrigerator to make it shine. Avoid adding to your bills when your expenses are already high.
The security guard protects our home
Not true! You may have a guard to watch over your home but untoward incidents can still happen. Opt for a comprehensive home insurance policy that covers financial losses due to natural calamities as well as manmade events. You can cover the structure as well as the contents of your house.